Management Dynamics

Volume 17 Number 2 Article 2

April 2017

Service Quality Measurement in Indian Hotels:Factor Structure &

Scale Validation
Nasir Mohd
Department of Commerce and Business Administration, University of Allahabad, Allahabad (U.P.), India

Adil Mohd
Department of Management & Humanities, National Institute of Technology Hamirpur, Hamirpur-177005,
(H.P.), India

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Recommended Citation
Mohd, Nasir and Mohd, Adil (2017) "Service Quality Measurement in Indian Hotels:Factor Structure &
Scale Validation," Management Dynamics: Vol. 17: No. 2, Article 2.
Available at: https://managementdynamics.researchcommons.org/journal/vol17/iss2/2

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 SERVICE QUALITY MEASUREMENT IN
INDIAN HOTELS: FACTOR STRUCTURE
& SCALE VALIDATION

Mohd. Nasir*
Mohd. Adil**

ABSTRACT

With the rapid growth of hospitality industry, many hoteliers have developed their online capabilities
and evolved into competitive dual-channel service providers. In such a case, strategic consumers have
more options to book a hotel enabling them to choose the best time and the best channel. This study
aims at measuring service quality being offered by traditional hotels in Allahabad with the help of
SERVPERF model. Besides, it also attempts to investigate the dimensionality, item structure and
psychometric properties of the SERVPERF scale in Indian hotel industry.
Findings reveal that SERVPERF scale fails to hold all the original items and hence, fails to confirm the
standard item assemblage within the backdrop of hotel industry. In all, seven dimensions have emerged
contrary to the original five-dimensions namely-tangibles, assurance, reliability, responsiveness and
empathy. Besides this, there were also a number of considerable issues which form the basis for the
current research. The outcome of the current study will be of help to managers of Indian hotel industry
to analyze their service offerings with reference to the suggested seven key factors and accordingly
develop strategies to highlight and prioritize them.

Keywords: Service Quality, Hotel, Scale Validation, Tourism, SERVPERF

*Research scholar, Department of Commerce and Business Administration, Faculty of

Commerce, University of Allahabad, Allahabad (U.P.), Email: mohdnasir22@gmail.com
**Assistant Professor, Department of Management & Humanities, National Institute of
Technology Hamirpur , Hamirpur-177005, (H.P.), Email: profadilmohd@gmail.com

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1. INTRODUCTION
The rapid development and growth of service sector in recent years has provided hotels with a great
number of attractive marketing opportunities. Planning Commission (2014) highlights that Indian
service sector is considered as the driver for country’s fast economic growth. Tourism and Hospitality
is the second most performing industry in India contributing more than 13.5% to the overall service
sector (Planning Commission, 2014) and is expected to achieve a growth of 16.1% CAGR to reach
2796.9 thousand crore (INR) by 2022 (KPMG, 2017).
India is a wide service market for travel & tourism offering not only varied portfolio of niche tourism
products of tourism but also it has been recognized as a spiritual and standard medical destination for
rest of the world. The Indian hotel industry experienced a strong progress driven by the substantial
inflow of foreign visitors as well as the domestic tourist movement across the country during the last
few years. According to the Economic Survey Report (2016-17) the influx of foreign tourist during
2016 was8.90 million marking an increase of 10.70percent while foreign exchange earnings (FEE)
stood at US$ 23.10 billion, obtaining a growth rate of 9.80% than previous years.
The concept of service quality has been a topical subject for service industry as it is linked to
satisfaction, loyalty and profitability (Zeithaml, 2000;Ladhari et al.,Cronin, 2003). Superior service
quality leads to increased customer satisfaction, customer retention, market share, return on
investment (ROI), enhanced profitability and sustainable competitive advantage (Han et al., 2008;
Gagnon and Roh, 2008; Gonzalez and Brea, 2005; Wilkins et al,2010). The significance of quality of
service to the economic performance of the service trades has been well recognized, particularly in the
hotel industry (Eccles and Durand, 1997; Mei et al.,1999 ;Kandampully and Suhartanto,2000;Tsang
and Qu, 2000; Campos-Soriaet al., 2005;Wilkins et al.,2007; Mmutle and Shonhe, 2017; Tefera and
Govender, 2017).Considering hotel development as an integral part of India’s tourism development, it
was given priority by the government. Moreover, increase in number of middle class people, better
connectivity, youth mobilization, government initiatives towards tourist promotion like Incredible
India, Athithi Devo Bhava and others further pushed the demand for the requirement of the hotels.
In spite of the overdevelopment of hotels in India, some articles (Patrick, 2013; Kashyap, 2014;
Grover, 2015; India Today, 2016) found that the standard and quality of services provided by the hotels
were still far below international standards. Problems included poor language ability and
communication skills, a lack of property maintenance, poor transportation facility, improper
marketing effort, unreliable reservations system, security challenges and poor sanitation. The cultural
and socio-economic differences amongst Indians lead to a discrepancy in expectation of service
quality and actual services offered by the service provider.
For the purpose of reinforcing the management of these hotels, and to raise service quality so that
hotels can match the international standards, the past researchers have provided a number of
monitoring and evaluation measures to standardize the service offerings. Application of those
measures has demonstrated the commitment of service workers to render consistent and excellent
services to its tourists. Although, a number of recent studies have attempted to measure service quality
in different industries (Spathis, Petridou and Glaveli, 2004; Keiningham et al., 2007; Gruber, Szmigin
and Voss, 2009; Chen al., 2010; Rood and Dziadkowiec, 2013; Adil et al., 2013a; Adil and Khan, 2012;
Aflaki and Popescu, 2013), but researches on budgeted hotels in India has largely been ignored. Thus,
to fill this gap, the present research attempts to test the applicability of original SERVPERF scale
together with investigation of dimensionality, item structure and psychometric properties of the scale
(Cronin and Taylor, 1992) in Indian context.

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& SCALE VALIDATION

This paper is structured as follows: a) next section presents a review of the existing body of literature
related to service quality, measures and varied service quality models, b) next section focuses on
research methodology c) this section on data analysis focuses on empirical test of inter-item
consistencies and psychometric properties of original SERVPERF scale at Indian hotel industry, d)
lastly, this section dwells upon conclusions, managerial implication, limitations and suggestions for
future research.
2 LITERATURE REVIEW
2.1 Service quality definition
Multitudinous attempts were made to define service quality in the past and accordingly researchers
attempted to propose key dimensions. For instance, Parasuraman et al. (1985) define service quality as
“…a difference of service expectation and service perception leading to a gap”. Later, Cronin and
Taylor (1992) explain ‘service quality’ as “service performance measurement rather on expectation
and perception by customer”. Eventually, Lehtinen and Lehtinen (1982) propose that two key
dimensions of service quality are ‘process quality’ and ‘output quality’. Similarly, Gronroos (1984)
suggests that two key factors of service quality are functional quality and technical quality. It is evident
from review of literature that there has been disagreement amongst researchers related to the
definition, item structure, dimensionality and measures of service quality.

Table 1: Select Studies on Service Quality in Hotels

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Source: Prepared by researchers

2.2 Perspectives on service quality performance measurement
Revolution brought with the advent of information technology and communication, late 20th century
has witnessed a rapid transition of economy from industrialization to service especially in select
developed and emerging economies of the world. Researchers suggest that service sector plays a key
role in the development and growth of country's overall economy. This swift shift in paradigm had
encouraged many researchers to devote a valuable contribution in service marketing especially in the
field of developing scale for service quality measurement and validation. A number of measuring scale
& model have been developed to measure the quality of service— for eg. SERVQUAL ( Parasuraman
et al., 1985); SERVPERF (Cronin and Taylor, 1992); RSQS (Dabholkar et al., 1996) etc. However,
owing to the limitation of SERVQUAL scale, SERVPERF (Cronin & Taylor, 1992) scale has been
widely used in service literature.
1. METHOD
1.1 Objective
The present study has the following prime objectives:
a. To examine the reliability and validity of the original SERVPERF scale in Indian hotel industry.
b. To investigate the factor structure of Cronin and Taylor’s performance model measure
(SERVPERF) in Indian hotel industry.
c. To validate the item structure and dimensionality of the obtained performance model measure in
Indian hotel industry.
d. To test statistically the psychometric properties of the original SERVPERF scale.
3.2 Study population and sample
The interest respondents for the current study comprises of those who have prior experience of staying

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SERVICE QUALITY MEASUREMENT IN
INDIAN HOTELS: FACTOR STRUCTURE
& SCALE VALIDATION

in budgeted hotel in Uttar Pradesh. The rationale behind selection of budgeted hotels under the present
study is that it dominates the hotel industry by serving to maximum number of people during a stated
period of time. We chose Allahabad district as a place of study for the following reasons: a) most
populous city of Uttar Pradesh (Census Report, 2011), b) spiritual tourist destination (Kumbh Mela), c)
most visited city of Uttar Pradesh by domestic tourists in 2016 (U.P city wise Statistics,2017), d)
educational hub for a long time and e) privileged to have a number of government and quasi-
government departments like (A.G. office, Uttar Pradesh Public Service Commission (UPPSC), High
Court, Higher Education Board, Universities, private and government owned technical institutes.
Thus, it can be considered as a representative of a population for the purpose of the study.
Questionnaire development and pilot study
Following the suggestions of Adil et al. (2013a, b), survey method was adopted to examine the service
quality at hotels in Indian context. Review of the existing literature on service quality in Indian
perspective (Adil et al.,2013a; Ullah and Adil, 2014; Adil et al.,2015; Ullah and Adil, 2016), led the
researchers to consider Cronin and Taylor’s (1992)service performance model for the present study.
Thus, service quality at Indian hotels has been measured through 22-item SERVPERF scale having an
expanded list of Five key dimensions namely—‘tangibles’ (04 items), ‘assurance’ (04 items),
‘responsiveness’ (04 items), ‘reliability’ (05 items), and ‘empathy’ (05 items).
As the present study is based on quantitative methodology and hence, a structured, closed ended
questionnaire in English was employed as a research tool for collection of data. First, the research tool
was handed over to three subject experts for examination in terms of its layout, content, structure etc.
The instrument consists of two important sections—first set contained statements related to
demographic profile of the respondent while the second set had items related to the original service
performance scale (Cronin & Taylor, 1992).
A five-point Likert scale anchored as 1=‘strongly disagree’ to 5=‘strongly agree’ employed to assess
the participants degree of agreement with the statements. A pretest was conducted on five managers
and ten guests belonging to budgeted hotels. This led to refinement and rephrasing of the statements.
Consequently, 38 guests staying at Allahabad budgeted hotels were contacted for pilot test. Taking into
account the feedback received during pilot study and pretest, items were suitably re-phrased to make it
better fit in Indian context. As suggested by Nunnally (1978) each dimensions met the Cronbach’s
alpha value standard of 0.7, as the result obtained from pilot study.
3.4 Data collection
To collect the data from the targeted sample, first we logged into the official website of IRCTC Tourism
(A Government of India Enterprises) and filtered our choice to budget hotels in Allahabad city. The
website provided us names and contact details of eleven hotels. Next, we contacted the reception of
these select hotels through phones to seek an appointment for a brief meeting. Of these, only five
contact numbers were found to be valid wherein in person meeting was requested by the dealing
personnel. We decided to visit all the eleven hotels as they all were in the prime locations, in vicinity to
Allahabad Railway Junction, Allahabad High Court, Civil Lines and Sangam area. Next we visited
these eleven budget hotels to meet the proprietors/managers/care takers and sought their permission to
include their hotel as a part of this survey. The meeting ranges from 10 to 20 minutes. From eleven, only
8 hotels agreed to be a part of this survey with a condition of not to approach the guests in their personal
rooms, while rest three managers/proprietors politely declined our request.

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Table 2: Demographic Profile of Respondents

Variable N=183 Percent

Gender Male 103 56.28
Female 80 43.72
Age 18-25 17 09.29
26-30 29 15.84
31-35 32 17.49
36-40 39 21.31
41-45 36 19.68
45 & Above 30 16.39
Occupation Student 19 10.39
Business 71 38.79
Service 60 32.79
Self Employed 33 18.03
Marital Status Married 73 39.89
Single 106 57.92
Divorcee 01 00.55
Other 03 01.64

With prior approval from the authorities, guests were approached at different public places like waiting
lounge, hotel's own restaurant/dining hall, common room etc. We adopted a non-random purposive
sampling technique in this research (Khan and Adil, 2013). Initially 250 questionnaires were handed to
guests of which 188 were returned, with only 183 found completed in all respect, giving a response rate
of 73.2%. Consistent with the suggestions from extant literature (Adil et al., 2013 a,b; Adil et al., 2015;
Ullah and Adil, 2016),respondents were approached at different day at different hours. This resulted in
a well-represented demographic sample.
The survey instrument captured the demographic data of targeted respondents (see Table 2). Of the 183
respondents, 56.28% were male; respondent relatively represent 58.48% between the age of 31–45
years. In terms of marital status, about 57.92% were single. More than 38% of the respondents were
belonging to business.
4 DATA ANALYSIS AND INTERPRETATION
4.1 Preliminary Analysis
The internal consistency of the SERVPERF scale has been done using Cronbach's alpha (α) while face
validity by expert opinion. The key evidence of SERVPERF’s construct validity comes from studies
that have actually employed it (Adil and Khan, 2011; Adil, 2012; Khan and Adil, 2013; Adil et al.,
2015; Juned and Adil, 2016; Ullah and Adil, 2016).

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& SCALE VALIDATION

It forms a primary component, of perceived service quality measurement system. This has also been
proved empirically that the validity of the 22 individual performance scale items explain more of the
variation while measuring service quality than does other measures (Cronin & Taylor, 1992). Though,
the SERVPERF is a standard measure, it might show different results in different settings. The number
of dimensions that might emerge, are often sample specific (Dunlup et al., 2000, Khan et al., 2012,
Khan et al., 2013). Thus, there is an urgent need to test the item and factor structure of the original
SERVPERF scale at Indian budgeted hotels.
Item reduction & Factor Analysis
Exploratory factor analysis (EFA) is a statistical method that describes variability in observed
variables and correlate variables in terms of potentially lower number unobserved variables called
factors. Extant literatures show that there is a lack of consensus among researchers vis-a-vis. number of
dimensions that emerge from the performance model (Cronin and Taylor, 1992). It is also found in the
previous studies that the scale items which define service quality in one industry may not be same for
every industry (Masoud & Omid, 2012).
Due to the lack of a commonly accepted or widely agreed scale exploration and validation procedure,
the researchers in the present study combined an exploratory process along with confirmatory factor
analysis (CFA)approach in order to reduce the ambiguity. EFA was conducted using SPSS 24.0. The
analysis was carried out by means of principal component analysis (PCA) with varimax rotation. The
seven dimensions explored were, thus, chosen for Bartlett’s test of sphericity and Kaiser- Meyer-Olkin
(KMO) measure of sampling sufficiency, see Table 3.

Table 3: Results of EFA

Variables Code KMO Value Factor Loading α TVE (in %)

Reliability H1 .697 .785 .723 55.086
H2 .760
H3 .747
H4 .672
Responsiveness H5 .745 .679 .726 54.966
H6 .677
H7 .797
H8 .802
Tangible H9 .669 .789 .717 63.896
H10 .833
H11 .775
Assurance H12 .679 .782 .738 66.781
H13 .850
H14 .818

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Variables Code KMO Value Factor Loading α TVE (in %)

Personal Care H15 .658 .743 .676 60.779
H16 .802
H17 .793
Convenience H18 .649 .729 .666 60.154
H19 .786
H20 .810
Amenities H21 .500 .853 .627 72.835
H22 .853
Note: TVE: Total Variance Explained; α: Chronbach's Alpha
The explored dimensions represented 65.153% of the total variance of the variables. The first& second
factor, “reliability” and “responsiveness” consists of four items each i.e. (H1-H4 and H5-H8) each
having a value of α= 0.723 and α= 0.726. The third, fourth, fifth and sixth factor i.e. “tangibles”,
“assurance”, “personal care” and “convenience”, were loaded with three items respectively (i.e. H9-
H11,H12-H14,H15-H17, and H18-H20), each having a value of α=0.717,α=0.738,α=0.676and
α=0.666. The last i.e. seventh factor “amenities” consists of two variables i.e. H21 and H22 having α
value as 0.627.The “assurance” factor was loaded with highest α value of 0.738 while “amenities” had
lowest α value of 0.627. The first factor i.e. reliability explained the maximum TVE of 27.33%.
Figure 2 Results of Measurement Model

Note:
A= Reliability,
B=Responsiveness,
C=Tangibles,
D=Assurance,
F=Personal care,
G= Convenience,
K=amenities

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4.3 Measurement Model

The confirmatory factor analysis (CFA) is recommended by ( Lee,2008), in order to overcome the
inherent limitations of the EFA i,e interpretation of results is limited by the subjectivity in which ‘factor
loadings’, ‘cross–factor loadings’, and factor independence are assessed. In terms of measurement
model assessment, the current study uses the methodology recommended by Gerbing and Anderson
(1988). We have used IBM AMOS 24.0 version to confirm the seven dimensional performance model
through CFA. The items loading to each dimensions were specified, followed by fitness of model.
Table 4 contains an overall summary of the key fit statistics for the seven dimensional measurement
model (Figure 2). The fit indices for the proposed model were found to be good fit. The GFI and AGFI
value are found to be considerable, minimum is 0.90, and ranges from 0.897to 0.912. The CFI value is
satisfactory 0.927, CMIN/df value 1.725, RMSEA 0.061. Hence, the overall model fit indices revealed
that all the goodness-of-fit measures were found within acceptable threshold.
Table 4 Summary of Fit Statistics

Fit Indicators Threshold Observed Value

CMIN/df < 3 good; < 5 sometimes permissible 1.725
GFI > .95 0.912
AGFI > .90 0.897
CFI >0.95 great; >0.90 traditional; >0.80 sometimes permissible 0.927
RMSEA <0 .05 Good;0 .05-.10 Moderate; >0.10 Bad 0.061

Table 5 Measurement model

Factors No. of Items CR AVE α Factor Loading
Reliability 04 0.894 0.551 0.723 0.627-0.785
Responsiveness 04 0.893 0.549 0.726 0.677-0.802
Tangibility 03 0.905 0.639 0.717 0.775-0.833
Assurance 03 0.795 0.667 0.738 0.785-0.850
Personal care 03 0.892 0.608 0.676 0.743-0.802
Convenience 03 0.889 0.601 0.666 0.729-0.810
Amenities 02 0.908 0.727 0.627 0.853-0.853
Note: CR = Composite Reliability; AVE = Average Variance Extracted; α = Cronbach’s alpha

Hence, against five dimensional structures, the seven dimensional model was found to be best possible
fit and more robust in Indian hotel context and can be concluded that the original SERVPERF has
strong psychometric properties.
The measurement model was further tested for convergent and discriminant validity. Convergent
validity is the degree to which various items used to measure the same concept are in agreement. To
assess convergent validity, Factor loadings, Composite reliability (CR) & AVE were also calculated

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(Hair et al.,1998). The suggested values for loadings are set at >0.05, the AVE should be >0.05 and CR
should be >0.7. The results of measurement model (Table 5) exhibits that the results exceeded the
recommended values, thus indicating sufficient convergence and discriminant validity for each
construct.
5 CONCLUSIONS & MANAGERIAL IMPLICATIONS
In today’s time, service quality is one of the most important codes or passwords when managing for
high performance and competitive advantage. Hotel customers want quality whether they receive a
service or buy a food (Gbenga and Osotimehin, 2015).The results of present research shows that
customers attribute service quality concept to include aspects such as—hygiene room, timely service
and employees’ positive attitude. These are some of the top traits of service quality expected by most
customers.
Further, the desired attributes of service qualityare‘24x7wi-fi connectivity’, ‘regular service
evaluation’, ‘good quality food and beverage services’, ‘proper caring of the guests’ and ‘good
customer relations’. The employees of the hotel consider service quality as a good employee attitude,
hygienic conditions, caring for guests and making sure that every individual gets good attention, good
communication skills and striving to meet customer expectations in line with world class paramount
standards.
Results of the present study offer a number of implications for hotel managers measuring service
quality. Advances in tourism industry lead to rapid growth in the number of hotels in the country.
Therefore, it is critical for hotels to address the service quality issue of customers. Our replication and
cross-validation of SERVPERF scale uncover evidences that five key factors does not hold true in the
context of an emerging economy like India. Two additional dimensions namely convenience and
amenities have been emerged while the third dimensions namely empathy has been re-worded to
personal care to make it fit according to the Indian context.
Thus, managers at Indian hotels may adopt the seven key factors of service quality and attempt to
continuously evaluate the expectations of their customers and actual service being offered by them.
This may avoid instances of customer dissatisfaction or frustration and, thereby enhances satisfaction ,
boosts repeat purchases and positive word of mouth. Customer feedbacks are vital and should be
collected periodically for continuous improvement of quality. Hotel staffs must be aware of the seven
dimensions of service quality and take a proactive approach to reinforce positive service quality
drivers and reduce inhibition. Eventually, this may lead to more acceptance, comfort, and confidence,
ultimately nurturing a positive attitude towards the hotel.
6 LIMITATION & FUTURE SCOPE
• Although researchers have tried their best to adopt measures to make the sample as best
representatives as possible, it is be noted that it may not be a true representation of the population.
Since India is a nation of rich & diverse cultures & vast geographic spread, the results might differ
elsewhere. Thus, steps to be taken by future researchers to include more areas and decide on
sampling procedures, which are better representatives so that study finding can be generalized.
• The study also suffers from an urban biasness as respondents were residing in urban areas and does
not take into account off located budget hotels. As the majority of Indian population resides in
rural area. It is important to measures their opinion too. Thus, future researchers need to also
include rural budget hotels too.
• Possibility of biasness in response cannot be ignored; it might be possible that the respondents

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gave replies that were desirables from their point of view. Some of the researcher may also have
given responses desirables from the point view of researcher. Future research need to take steps to
eliminate such biasness affecting the study finding.
• Further, the fact that the budget hotels at Allahabad may have unidentified differentiating
characteristics from other markets, generate concern. Thus, one must guard against
generalizations of the research findings.

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